The world of banking is more interesting than It's Only Money thought.

As our last post revealed, reader Vince Patton wondered why he, in this day and age, couldn't make multiple transactions in his savings account via the Internet.

Turns out, there's good reason: To protect your bank's assets. But you do get an unlimited number of "get-out-of-your chair transactions," according to Janet M. Josselyn, Director of Compliance Services for the Credit Union Association of Oregon.

What are those? Her full explanation follows:

According to Josselyn, under Regulation D, banks and credit unions must set aside reserves based on the amount in all transaction accounts.

But in non-transaction accounts such as savings and money-market accounts, withdrawals must be restricted to no more than 6 per month, and no more than 3 of those can be pre-authorized transactions.

"This is to keep these non-reserved for accounts from being used as a transaction account," she said.

There are some transactions that are not limited such as in-branch and ATM transactions.

"These are unofficially referred to as get-out-of-your chair transactions," she wrote.

There is some amount of inconvenience involved where there isn't for say an internet transaction. A consumer consistently exceeding the limits may have their account closed or changed to a transaction account after a period of notification, also a requirement of the law. Some banks and credit unions make a business decision to reserve for all accounts so they get beyond needing to track and limit transactions. However that can be a costly decision.

She agreed with Patton that Regulation D now seems inconvenient. "It is indeed antiquated," she wrote, "But regardless we must comply. It is intended to predict cash runs on financial institutions beyond what is reserved for."

For at least the past 10 years I have heard that this provision in the law is being considered for deletion. But it never quite gets there. With the electronic shopping and internet marketplace it certainly seems time. However, the fact remains if you have a need for frequent transactions you are best served by a transaction (checking) account and not use your savings account for that purpose.